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2 key risks are endangering the global economy, IMF says

BI PRIME: World economic growth is set to remain firm this year and next, but remains vulnerable to payback from two key factors.

  • World economic growth is set to remain firm this year and next, but remains vulnerable to payback from two key factors, according to a new International Monetary Fund report — Chinese private debt and a temporary US fiscal stimulus whose effects will fade.
  • "Some of the temporary fiscal support underpinning current growth will end," the IMF said in its G20 staff report.
  • "The positive momentum expected for 2018 and 2019 will eventually slow, implying a challenging medium-term outlook for many countries," the Fund predicted.
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The world economy may get a temporary boost from a combination of US tax cuts and Chinese government spending to bolster state-owned enterprises, but payback is coming and longer-term growth prospects remain subdued, the International Monetary Fund said in a new report.

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